In Copenhagen rise of Orsted, OK from US judge to resume work Revolution Wind

(Il Sole 24 Ore Radiocor) - Orsted jumped on the Copenhagen Stock Exchange, after a US federal judge authorised the resumption of work on the nearly completed Revolution Wind project suspended last month by the Trump administration. The US court ruling is a real snub for Trump, who has always criticised wind farms, calling them ugly, unreliable and expensive. For Orsted, however, it is a major victory.

The Danish group had been losing USD 2 million a day since the US Bureau of Ocean Energy Management (BoEM) ordered a work stoppage on 22 August, citing unspecified national security concerns. Orsted and its jv partner Skyborn Renewables had immediately appealed the decision, pointing out that all the required permits for the project had been obtained. Revolution Wind, located about 24 km off the Rhode Island coast, was 80% complete at the time of the suspension, with all offshore foundations installed and 45 of the 65 wind turbines already in place. Once completed it will provide electricity to over 350,000 homes.

Orsted and its jv partner Skyborn Renewables have already invested or committed around$5 billion in the project, which would have involved cancellation costs of more than $1 billion, according to US court documents. The decisions of the Trump administration, which is putting a brake on all 'green' energy in favour of fossil fuels, combined with difficulties caused by inflation, rising interest rates in recent years, and problems in the supply chain led Orsted to vote a 60 billion kroner (around 8 billion euros) capital increase by offering the new shares at a 67% discount. The subscription period started on 19 September and will end on 2 October. The Danish state, a 51% shareholder, will participate in the transaction, as will Norway's Equinor, which holds 10% of Orsted. The resumption of work in the US is also a breath of fresh air for the success of the recapitalisation. Analysts also reacted positively to the US judge's decision. Arctic raised its recommendation on Orsted from 'sell' to 'buy' and set a target price of DKK 130. Clarksons Platou Securities raised its recommendation from 'sell' to 'neutral', with a target price of DKK 125.